An Operating Lease Is Cancelable Because

question 94

Multiple Choice

An operating lease is cancelable because:

• A)The asset is easily broken or damaged
• B)The lessee typically is uncertain about his use needs for the asset
• C)The lessor may need the asset for some other purpose
• D)The lessee is not a good credit risk

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Definitions:

Sectoral Shifts

Changes in the economic landscape that affect specific sectors of the economy, leading to shifts in labor demand and supply.

Structural Unemployment

A form of unemployment caused by a mismatch between the skills that workers in the labor market offer and the skills demanded by employers.

Demand for Output

The desire and willingness of consumers or businesses to purchase goods or services produced within an economy.

Frictionally Unemployed

Individuals temporarily out of work while transitioning from one job to another or actively searching for new employment.